Withholding Taxes: Utah

Federal law and guidance on this subject should be reviewed together with this section.

Authors: Steve Young, Holland & Hart LLP

Summary

• All Utah employers must withhold Utah income taxes from all wages paid to nonresident employees for services performed within Utah and from all wages paid to resident employees for all services performed both in and outside Utah. However, an employer that does business in Utah for 60 or fewer days in a calendar year and that receives Utah Tax Commission approval does not have to withhold Utah income taxes from the pay of its employees. Utah provides a short-term service nonresident employee exemption from withholding. See Withholding on Residents, Nonresidents and Expatriates.
• Utah employers determine withholding using federal Form W-4. See Form W-4.
• Employers must withhold on supplemental wage payments, such as bonuses, as if the payments were a regular wage payment. See Supplemental Wages.
• Utah employers must provide each employee from whom state income tax has been withheld with a Form W-2, Wage and Tax Statement, showing the total amount of compensation paid and taxes withheld during the preceding calendar year. See Form W-2 Reporting Requirements.
• Employers are required to keep records of wages paid and taxes withheld. See Recordkeeping Requirements.